BBB at a Glance - Quick Facts

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How to Improve Your Credit Score

Whether you like it or not, the ugly truth is your credit report and credit score have a great deal of power. They serve as key tools that measure the financial risk you pose to lenders. The higher the score, the lower the risk. Credit scores and reports are used to determine whether or not you are approved for a mortgage, loan, or even a bank account and can positively and negatively affect the interest rates on your credit cards and other borrowing methods. Therefore, it is extremely beneficial to do what you can now to improve your credit score and resolve any errors on your report. This will prevent this information from haunting the remainder of your financial life.

According to a recent Federal Trade Commission report, more than one-in-four credit reports contain errors. Make sure to check your credit report for errors or potential fraud once each year. You can order a free copy of your credit report from the three major credit reporting agencies once every 12 months by visiting www.annualcreditreport.com. The site is run by the three credit reporting agencies: Equifax, Experian, and TransUnion. Keep in mind that this is the only free resource to receive your official credit report. Do not fall for any other company that advertises “free” credit reports because these companies will make you sign up and pay for other services.

After you check out your credit report, the next step to take is to fix any errors. Contact each of the three reporting agencies to report the errors, and begin the process to correct them. This often requires sending in a letter, including your name and address, exactly which items you’d like to dispute and why. Include copies of supporting documentation and a copy of your report with the errors circled or highlighted. Also contact the provider of the incorrect information and have it fixed on their end, so the problem does not reappear in the future. If you still encounter issues, visit The Federal Trade Commission to learn more about your rights when dealing with credit reporting agencies.

It’s always good to be building good credit because this will help you out in the future. Here are some quick and easy tips on how to maintain a good credit score or make some necessary improvements:

• -Keep track of your bills and make sure to pay them on time.
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• -Do not max out your credit cards. Keep your credit card balances low, and try to limit your purchases to less than 25% of your credit limit at any time, even if you always pay off your bills in full.
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• -Limit the number of credit cards you open, including retail store cards. They may come with great perks, but many cards show lenders that you tend to borrow money at high rates over short periods of time, which signals risky borrowing behavior.
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• -Keep open old cards with a long credit history. They may help your credit score because the length of your credit history accounts for 15% of your score. The higher the average age of your accounts, the more it could improve your score.
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• -Remember to pay traffic or parking tickets or even library fines. If these bills end up at a collection agency, it could drop your credit score by as much as 100 points! Make sure to also keep records of these sorts of payments, in case you need to dispute an error.
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For more information, visit BBB’s Managing Credit – Made Simpler. There you will find tips on paying off balances, managing your budget, getting financial help, and protecting yourself from credit fraud.

Western Union and Better Business Bureau Warn of Charity Scams During Giving Season

The holidays bring out the best in people, and many charities count on end-of-year generosity from donors to meet the needs of those less fortunate.   Sadly, scammers know this and prey on unsuspecting consumers who don’t do their homework when giving money to charities.  Scammers solicit by phone and email, or post links to fraudulent charities on social media sites with names similar to those of legitimate organizations.  In some cases, scammers even pose as legitimate charities, in one variation of the so-called imposter scam.

Western Union and Better Business Bureau launched BBB Scam Stopper to help consumers reduce their chances of becoming a victim of common scams.  “We urge donors to give thoughtfully, and to be wary of scams this holiday season,” said Art Taylor, President and CEO of BBB Wise Giving Alliance, “It’s important to check out a charity first, and make sure you are giving to a charity that will use your donation wisely.” BBB’s give.org has reviews of more than 11,000 charities.

Here are tips to consider when giving money to charities:

 

·         It’s best always to donate to a charity directly after confirming its legitimacy – rather than giving in response to a phone call or by clicking an email link.

·         Never send a money transfer to an individual for a charity.  Western Union does accept donations for charities, but the money transfer must be sent to the organization, not to an individual.

·         Never share banking or credit card information with a person or business you don’t actually know.

·         Never click on links to charities on unfamiliar websites or in texts or emails. These may take you to a lookalike website where you will be asked to provide personal financial information or to click on something that downloads harmful malware into your computer.

“Resist rushing.  If a charity is legitimate, they’ll accept your donation any time,” said Shelley Bernhardt, Director of Consumer Protection at Western Union.

For more information visit westernunion.com/stopfraud or, to test your knowledge of scams, take the Fraud Quiz: westernunion.com/fraudquiz.

To learn more about which charities meet BBB Wise Giving Alliance standards, go to give.org. 

Sharp Rise in Online Retailer Complaints

The long lines for the newest iPhone showed that consumers are still willing to wait for the latest and greatest electronic device. However, many prefer to skip the line and jump online to find good discounts on electronics and other items. But before you do, Better Business Bureau is warning online shoppers to beware of questionable advertisements and phony websites.

BBB received six times more complaints nationally against online retailers in 2012 than 2011 – from 62 in 2011 to 347 complaints in 2012. Most consumers allege they were charged undisclosed fees and taxes, while others claim they were charged for a product they later discovered was out of stock and undeliverable.

When considering the purchase of an electronic device or any item from an online retailer, it’s important for consumers to do their research. Make sure the price advertised is specifically for the device you want and not just a similar version. Also, remember that not all websites are legitimate. Ensure the site is secure by looking for the “s” in https when entering your payment information.

BBB advises consumers to also look out for the following when planning to do business with an online retailer:

1) Advertised prices are much lower than retail. Everyone is looking for a bargain on electronics and scammers use tantalizingly low prices to lure victims in. If the prices for items are well below those of trusted competitors, be prepared to walk away.

2) Spelling and grammar. Many phony electronics websites are created by scammers overseas and you can spot them because they usually contain spelling and grammar mistakes.

3) Payment via wire transfer only. Scammers often ask victims to wire payments because the money cannot be easily tracked or retrieved in the case of fraud. BBB recommends always using a credit card to pay for electronics online. If the website turns out to be fraudulent, you can dispute the charge with your credit card company.

4) Lack of information. Always try to find a seller’s physical address, not just a P.O. Box and phone number. Research the company’s name and website for additional information. Check bbb.org for detailed information about the company including owner information and history of complaints.

5) Fraudulent security seals. When shopping online, you want to look for the seals of trusted organizations and confirm that the business’s use of the seal is legitimate. You can typically do this by clicking on the seal which, if legitimate, will link you to a confirmation page on the certifying organization’s site. For BBB Accredited Businesses using the dynamic seal on their website, the clickable link will direct the consumer back to the company’s BBB Business Review.

How often do you shop online for business or personal reasons?

Help Your Employees Share the Holiday Spirit

According to a report from Giving USA, charitable giving grew by about 3.5 percent last year, totaling $316.23 billion. Much of the giving takes place during the holidays and businesses often lead the way.

There are more ways to spread holiday cheer to the less fortunate than simply donating money, however. One way is to harness your employees’ natural desire to help others.

BBB has the following tips for businesses looking to help employees share their time, talent and treasure:

Match donations. One way to encourage cheerful giving is to match a portion of your employees' local charity donations.

Ask for employees’ charity recommendations. Invite your employees to select a charity as a group and promote their cause throughout the holiday season. Not only will this help the charity of your choosing, but your business may benefit from the brand awareness created by aligning yourself with a worthy organization.

Do some research. Learn how the organization uses the donations it receives by reviewing its BBB Charity Report online at www.give.org. Avoid giving to the wrong charity. Check the name of the organization closely to ensure you are giving to the right one, rather than a similarly-named organization that might not be legitimate.

Offer time off for volunteering. Consider giving employees paid time off for volunteering for charities. BBB gives employees 16 hours of paid leave for charity volunteer work. Employees have a year to utilize those hours for any charity they want to support. Call the charity directly and ask them if there are opportunities available and make it a company event. Consider wearing matching clothes with company logo to identify your business while you volunteer to market your brand.

Pick a cause you believe in. One great way to get motivated is to find an organization that appeals to the same demographic as your business. For example, if you sell clothing, consider aligning yourself with a children’s or women’s shelter where your donation directly impacts the individuals there.

Hold a food drive. BBB encouraged staff to donate to a local food bank last year by holding a team contest on who could collect the most food items. The prize was minimal, but in the end, the contest netted 1,425 pounds of food for families in need.

Partner with a charity. Supporting a fundraising event such as a toy or food drive can be a source of good public relations. Businesses can donate time, floor space or promote volunteering among the staff.

How do you spread the holiday cheer?

How to Market for the Holidays without Breaking the Budget

Some businesses depend on the holidays for a big portion of their annual revenue. For others, the fall/winter holiday season might be a slow time of year. Either way, this is a great time to engage and connect with your customers.

Holiday marketing doesn’t have to mean offering big discounts. There are many ways for businesses on a budget to go after their piece of the holiday pie.

BBB has the following tips for businesses looking to take advantage of the holiday season:

Use holidays to add a personal touch. Offer special discounts or sales tied to holiday themes. Showcase seasonal gifts, menus or merchandise. Offer treats like warm cider to get customers into the holiday spirit. You could use the opportunity to present a special offer or coupon that customers can redeem any time through Dec. 24.

Make special holiday offers for faithful customers. One way to take advantage of the season is to make existing customers feel special and try to get their repeat holiday business. You can make special offers available to current customers — give them sneak previews; offer perks like free shipping or secret sales.

Feature different products or services. You could feature different products or services and give them a holiday spin. Share your holiday-themed promotion on your website, social media, email, posters and flyers.

Cross-promote. You might be able to partner with a complementary store or restaurant and offer limited time specials that cross-promote each other’s goods and services. For example, a retailer and restaurant could hold in-store events where the restaurant provides food and drinks and the retailer provide the location.

Get involved in local events. Supporting charities, as well as sponsoring or getting involved in community events can generate awareness for your business during the holidays. If you can’t donate large chunks of money, you could volunteer or offer space or services.

Use your website and social media. Target and connect with local consumers during the holidays using your website, social media or email marketing. Develop holiday themes for email templates and update your social media with a holiday theme. You can also use social media to engage customers about their holiday activities and help drive foot traffic to your store.

Check back often for all your business tip needs.

BEFORE SMALL BUSINESS SATURDAY®

Are you a small business owner? Make Nov 30 one of the biggest days of the year for your business by taking part in Small Business Saturday®. Check out resources that can help you stand out on the big day at ShopSmall.com.

• SPREAD THE WORD: Download marketing materials that can help you attract new customers on the day

• PROMOTE YOUR BUSINESS: Apply for free personalized online ads. Eligibility restrictions apply; see Terms of Participation for full details. Registration for free ads closes on 11/4/13 or while supplies last.

• GET INSPIRED: Visit ShopSmall.com to see what others have done in past years to make the day a success

This is a day no small business would want to miss. Make sure you’re a part of Small Business Saturday 2013.